Correlation Between Aluminum Corp and Chongqing Shunbo
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By analyzing existing cross correlation between Aluminum Corp of and Chongqing Shunbo Aluminum, you can compare the effects of market volatilities on Aluminum Corp and Chongqing Shunbo and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Aluminum Corp with a short position of Chongqing Shunbo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and Chongqing Shunbo.
Diversification Opportunities for Aluminum Corp and Chongqing Shunbo
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aluminum and Chongqing is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of and Chongqing Shunbo Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Shunbo Aluminum and Aluminum Corp is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Aluminum Corp of are associated (or correlated) with Chongqing Shunbo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Shunbo Aluminum has no effect on the direction of Aluminum Corp i.e., Aluminum Corp and Chongqing Shunbo go up and down completely randomly.
Pair Corralation between Aluminum Corp and Chongqing Shunbo
Assuming the 90 days trading horizon Aluminum Corp of is expected to under-perform the Chongqing Shunbo. In addition to that, Aluminum Corp is 1.11 times more volatile than Chongqing Shunbo Aluminum. It trades about -0.14 of its total potential returns per unit of risk. Chongqing Shunbo Aluminum is currently generating about 0.04 per unit of volatility. If you would invest 656.00 in Chongqing Shunbo Aluminum on August 30, 2024 and sell it today you would earn a total of 10.00 from holding Chongqing Shunbo Aluminum or generate 1.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aluminum Corp of vs. Chongqing Shunbo Aluminum
Performance |
| Timeline |
| Aluminum Corp |
| Chongqing Shunbo Aluminum |
Aluminum Corp and Chongqing Shunbo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminum Corp and Chongqing Shunbo
The main advantage of trading using opposite Aluminum Corp and Chongqing Shunbo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp position performs unexpectedly, Chongqing Shunbo can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Chongqing Shunbo will offset losses from the drop in Chongqing Shunbo's long position.| Aluminum Corp vs. Wanhua Chemical Group | Aluminum Corp vs. Baoshan Iron Steel | Aluminum Corp vs. Rongsheng Petrochemical Co | Aluminum Corp vs. Hoshine Silicon Ind |
| Chongqing Shunbo vs. Wanhua Chemical Group | Chongqing Shunbo vs. Baoshan Iron Steel | Chongqing Shunbo vs. Rongsheng Petrochemical Co | Chongqing Shunbo vs. Hoshine Silicon Ind |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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